Whether you're relocating, upsizing, or downsizing, figuring out how to sell a house while buying a new one is a common dilemma.
As a buyer, you may need the equity from your current house to secure a new home — especially if you're looking in a competitive market where cash or contingency-free offers are the norm.
While selling your house first to free up funds is the typical course of action, it often requires you to move twice — and either stay with family or find a short-term lease until you can close on a new home.
You also risk missing out on properties currently for sale and seeing home prices rise in your target market.
Fortunately, you have options.
How to sell and buy a house at the same time
Selling and buying a home at the same time is possible, but it can be tricky to pull off. You’ll typically have to line up closing and moving dates, pay off your old mortgage while starting a new one, and try to coordinate showings while also packing up.
The process can be stressful, but there are options that can make it easier, such as:
- Buy-before-you-sell services
- Bridge loans
- Home equity loans
- Home sale contingencies
- iBuyers
- Lease-back agreements
- And more
Each option comes with its own set of advantages and drawbacks, which we’ll look at in more detail below. The option you choose will largely depend on four main factors:
Your financial picture: The amount of equity in your house can help you qualify for certain loans and buy-before-you-sell services. If you have enough funds on hand to make an offer on a new home, you’ll have significantly more flexibility than if you need to rely on the sale of your current home for a new downpayment.
Your home’s condition: If your home needs work, you may have a hard time selling on the open or even to an iBuyer. Instead, you’ll need to rely on a cash buyer or potentially use a service that will help you complete home improvements before listing.
Your timeline for moving: If you have some flexibility around closing dates, then lining up your purchase and sale will be easier. If you’re on a tight timeline, then you may need to rely on an iBuyer, cash buyer, or home trade-in service, all of which usually offer fast closing times.
Your priorities: If you’re willing to sacrifice a higher sale price for a faster and more convenient sale, then you’ll likely have an easier time buying and selling at the same time. Other factors, such as whether you have temporary accommodations available for moving between properties, will also determine which options make the most sense.
With Clever Offers, you can sell your house for cash in as little as a week without sacrificing your equity. Get up to 89% of your home value upfront, use the cash to move, and keep the additional upside when you sell on the open market for your asking price
Get Cash OffersOption 1: Buy a house before you sell
Use a buy-before-you-sell program | Apply for a traditional bridge loan | Request a home sale contingency | Seek a home equity line of credit | Tap your investment account | Prepare for overlapping mortgages
Your first option is to try to buy your new home before you sell your old one. This route may make sense if you live in a hot seller’s market where you know your old house won’t take long to sell. It can also be a convenient option if you want to move out of your old house and renovate it to increase its potential sale price.
There are many options for buying first and selling after, such as a buy-before-you-sell program or a home sale contingency.
Use a buy-before-you-sell service
Buy-before-you-sell companies, also known as home trade-in services, are companies that allow you to buy a new home before selling your current one. The new home is purchased with a bridge loan that’s based on your current equity.
Once your house sells, then you pay back the loan from the company (plus interest and fees) using the proceeds from the sale, on top of your traditional closing costs. If your house fails to sell within a certain timeframe, the buy-before-you-sell company will often buy your home outright.
Pros
- You can avoid the stress of having to pay for two mortgages at the same time.
- If your house doesn’t sell, you’ll have a backup cash offer from the trade-in company.
- You’ll be able to make all-cash offers on your new property, potentially making you stand out against competing buyers.
- You’ll have the flexibility of being able to move into your new home without having to line it up with the closing date on your old home.
Cons
- Buy-before-you-sell programs charge high service fees, sometimes up to 6% (which is more than what some realtors charge).
- Some companies charge rent while you're staying in your new home until you’re able to sell your old one.
- Most buy-before-you-sell services are only available in select markets.
Apply for a traditional bridge loan
You can also get a bridge loan from a traditional mortgage lender to buy before you sell. You can direct the funds toward a down payment or toward an existing mortgage — wherever the need is greater.
Because bridge loans are designed to “bridge the gap” between making an offer on a new house and getting the funds from the sale of your old house needed to close, they typically come with a repayment term of less than a year. Bridge loans also carry higher-than-average interest rates due to the short-term nature of the loans. And, you'll need to use your home as collateral.
Pros
- You’ll get access to instant cash without having to worry about selling your current home first.
- You can choose whether to use the funds for a down payment or towards your current mortgage.
- Unlike buy-before-you-sell services, you’ll own your new home from the start, so you won’t have to pay rent.
Cons
- Higher interest rates and fees than conventional loans.
- Pressure to sell your old home quickly to avoid interest payments.
- You’ll typically need enough equity in your current home to qualify.
Request a home sale contingency
With a home sale contingency, you’ll make an offer on a new home, but that offer will be contingent on selling your current home first. You can also use a contingency when you sell, which will allow you to back out of the sale of your home if you’re not able to find a new home.
This setup reduces the pressure of trying to line up to real estate transactions. As Warner Quiroga, President/CEO of Prestige Homebuyers, says, “Contingent offers can prevent having two houses by having your offer to purchase dependent on the successful selling of your residence.”
Pros
- If you're not able to sell your home in a reasonable amount of time, you are off the hook.
- You’ll have the convenience of being able to sell your home before having to purchase your new one.
- Fairly easy to line up closing and move-in dates on both properties.
Cons
- You’ll need the other buyer or seller to agree to your contingency, which gives you less control over your sale/purchase.
- You’re doubling your debt, so lenders may be less likely to pre-approve you for a second mortgage, which could interfere with your home purchase.
- Contingent offers are often less attractive to sellers than non-contingent cash offers.
Seek a home equity loan or line of credit
A home equity loan is a traditional loan that is based on the equity in your house. It usually comes with fixed payments and fixed interest rates. You can use the loan however you want, including making a down payment on a new home before your current one sells.
A home equity line of credit (HELOC) is similar in that it’s also based on your home’s equity, except it’s a type of revolving line of credit. You are given a credit limit and can draw on it as needed, similar to how you would use a credit card. HELOCs tend to have interest rates, though, so your payments can fluctuate.
Pros
- You can access funds on an as-needed basis, much like a credit card.
- You only pay interest on the portion of the line of credit you actually use.
- Rates and fees may be better than bridge loans.
Cons
- You’ll typically need at least 10% equity in your current home to qualify.
- Interest rates may be variable and could rise, making repayments more difficult.
- You could lose your home if you fail to repay and default.
Tap your investment accounts
You can also cash out your investments to pay for a down payment on a new home or even to buy it outright before selling your current one. When selling stock to buy a house, you’ll need to consider any tax obligations, especially capital gains tax, which will vary depending on how long you’ve held the stock for and what your current income is.
While using investments is convenient and can make financial sense, you may also lose out on future growth in your investment portfolio by putting it into your home instead. Whether or not using your investments to pay for a home makes sense depends on the health of both the current and future housing and equities markets, as well as interest rates.
Plan for overlapping mortgages
If you're fortunate enough to afford higher monthly expenses temporarily, you could plan to have a few months of making two mortgage payments. This way, you’d simply buy your new home and pay two mortgages until your old house sells.
However, getting a new mortgage while you're still paying off your current one may be tricky since your debt-to-income (DTI) ratio will go up. Lenders may be unwilling to pre-approve you for a second mortgage if your DTI ratio is too high.
Pros
- No need to line up the closing and move-in dates on both properties
- You can take your time moving into your new home.
- Because you may have already moved out, the process of selling (such as renovations and showings) will be less disruptive.
Cons
- Covering two mortgage payments is too much of a financial burden for many people.
- You may not qualify for a second mortgage if your debt-to-income ratio is too high.
- No guarantee of when your old house will sell.
Option 2: Sell first, move later
Sell to an iBuyer or other cash buyer | Negotiate a lease-back agreement | Ask for a longer closing period
Another way to sell and buy a house at roughly the same time is to focus on selling your house first and then moving later. This approach takes some of the pressure off of trying to sell as quickly as possible once you’ve found your new home. But depending on how you do it, you could end up paying more or losing out on a higher sale price.
Sell to an iBuyer or other cash buyer
Cash buyers, such as iBuyers or “we buy houses” companies, can buy your house fast, sometimes allowing you to close in just a couple of weeks. These companies tend to be very flexible with timelines and will typically allow you to choose your own closing. That way you can choose the amount of time you think you may need to buy a house.
However, in exchange for this convenience, you’ll also have to accept a lower selling price. Depending on the condition of your home and the local housing market, you could get anywhere from 50% to 90% of your home’s fair market value. Keep in mind that iBuyers will also charge service fees and may reduce their final offer following an inspection.
Pros
- Choose your own closing date, allowing you to take your time buying a new home.
- Less likelihood of deals falling through because of financing issues.
- No need for open houses, showings, or home improvements before selling.
Cons
- You’ll receive less than fair market value for your home.
- iBuyers have strict eligibility requirements, service fees, and limited availability.
- Some cash buyers may use shady and high-pressure sales tactics.
Negotiate a lease-back agreement
Rent-back agreements (also called lease-back agreements) let you sell your home first and then live in it as a tenant until you can close on your new home. As Alex Coffman, Co-Owner of Teifke Real Estate, says, a lease-back agreement “lets you stay in residence while searching for a new place, reducing the need for temporary housing.”
Rent-back agreements take the pressure off of trying to line up the buying and selling processes. You may feel less pressured to find a new home right away and you’ll have the reassurance of knowing that when you do find your new property, your current home has already sold.
Pros
- Take some of the pressure off of finding a new home as fast as possible.
- No need to find temporary housing between buying and selling your properties.
- Some buyers may be willing to negotiate flexible timelines that work better for you.
Cons
- You’ll have to pay rent and a security deposit after your house sells.
- Not all buyers are willing to offer lease-backs, which may result in fewer offers.
- Some buyers may expect a lower sale price in exchange for a lease-back agreement.
Ask for a longer closing period
When negotiating with a buyer (especially if the buyer asks for repairs following an inspection), you can always request a longer closing period. This will give you time to find a new home, while still being able to live in your current home. You’ll also be reassured knowing that when you do find your new home, your old one has already sold.
However, not all buyers will be able or willing to entertain a longer closing period, which could reduce the number of offers you get. Buyers that are open to an extended closing period may expect something in return, such as a reduced sale price.
Pros
- You’ll have extra time to find a new home to buy.
- No need to arrange temporary accommodation between properties.
- Feel reassured knowing that once you’ve found your new home, the sale of your current one is already done.
Cons
- You may get fewer offers since not all buyers will accommodate a longer closing period.
- Buyers may expect some concessions in return, such as a lower sale price.
- You’ll still need to move out by the closing date, even if you haven’t found a new home.
Resources to help you buy and sell at the same time
If you’re considering selling and buying a house at the same time, you may want to consider some companies that can help facilitate the process. Below we’ve listed some well-known buy-before-you-sell programs, iBuyers, and cash buyers.
While these aren’t your only options for selling and buying at the same time, if you’re thinking about using one of these companies, here’s what you should know about each one.
Buy-before-you-sell programs
Customer Rating
Service Fee
Time to Close
Why we chose it
Pros and cons
Specifics
Knock's Bridge Loan lets you borrow against the equity in your current house to buy a new home before you sell.
The loan covers your down payment, moving expenses, home prep costs (like minor repairs and staging), and ongoing mortgage payments while your house is being listed. You can also borrow up to $35,000 for home improvements before listing.
If your current home doesn’t sell within six months, you have a guaranteed cash offer to fall back on, worth about ~80% of your home's market value. See our full Knock review
Customer Rating
Service Fee
Time to Close
Why we chose it
Pros and cons
Specifics
Orchard is a solid option if you want to try selling on the open market, but you like the certainty of having a backup cash offer.
Its trade-in service lets you borrow the equity in your current home to make a non-contigent offer on a new one, meaning you don't have to wait for your house to sell to free up funds for a down payment and closing costs.
The downside? Orchard's fees start at 8% of the sale price. And if your house doesn’t sell on the open market, Orchard’s backup offer will be less than your house is worth. See our full Orchard review.
MORE: Top buy-before-you-sell programs
iBuyers
Customer Rating
Service Fee
Time to Close
Why We chose it
Pros and cons
Specifics
Clever Offers helps you find and compare offers from leading cash buyers in your area — all with a proven track record of ethical dealings with home sellers.
Because Clever's network includes local/national investors, iBuyers, and agents with experience listing homes as is, you get a range of offers to choose from — including alternative deal types that deliver a higher payout over time.
The 5-star rated company gets top marks for helping you make an informed decision without pressuring you to move forward. See our full Clever Offers review.
Customer Rating
Service Fee
Time to Close
Why we chose it
Pros and cons
Specifics
Opendoor is for home sellers who want to skip the hassles of a traditional home sale — without sacrificing too much on price.
You can get an initial offer within 24–48 hours, choose your closing date, and skip repairs and showings. The company also pays much closer to market value than traditional house flippers.
Opendoor does charge a 5% service fee, and some customers complain that final offers are lower than initial estimates. See our full Opendoor review.
Customer Rating
Service Fee
Time to Close
Why we chose it
Pros and cons
Specifics
As an iBuyer, Offerpad stands out for its perks, including free local moves and a 3-day grace period to wrap up your move after closing.
You can choose between listing with an agent and getting a cash advance for home prep/repairs or taking a competitive cash offer with flexible closing dates, ranging from 8–90 days.
If you accept a cash offer, be prepared for relatively high repair costs — which customers report can substantially reduce your final offer. See our full Offerpad review.
MORE: The best companies that buy houses for cash
Top real estate agents
An experienced real estate agent will have the expertise to help you figure out a strategy to sell and buy a home at the same time. For example, your real estate agent can discuss different financing options with you, help you negotiate contingencies, or find cash buyers.
A real estate agent can also assist you with understanding how long it may take for your home to sell given current real estate market conditions. Because they’ll know what buyers are looking for in your area, they can recommend home improvements that could attract more buyers.
Some top brokerages even offer concierge services that take care of home improvements and repairs to get your home market-ready. You only pay for the work at closing. That way your home can sell more quickly without you having to worry about upfront costs.
For example, Suzanne Seini, CEO and Owner of Innovate Realty, says, “We offer a program called InnoEquity. The program enables homeowners to tap into their equity with no out-of-pocket costs and have pre-listing renovations done to their homes. The homeowner would then pay for the work when they close escrow.”
Being able to sell or buy quickly makes it easier to line up both transactions at once. So you’ll be less likely to be saddled with two properties at the same time or stressed about finding temporary accommodation. Plus, if you use the same agent to sell your house and find your new one, you'll have leverage to negotiate a lower commission rate.
MORE: The best low-commission realtors and brokers
FAQs
Is it better to sell your house first before buying another?
Selling your house before buying another one may be the best choice for some people. Selling first ensures you have the funds for a downpayment on your next home. However, you may need temporary housing if you don’t find a new home by the time you have to move out of your old one.
Can I buy a house before my old one sells?
Yes, you can use the equity in your current home in order to make an offer on a new one, such as through a buy-before-you-sell/home trade-in service, bridge loan, or home equity loan. You can focus on selling your old home once you have moved into the new home.
What are the best buy-before-you-sell programs?
The best buy-before-you-sell program for you depends on many factors, including your home’s condition, how much equity you have, whether your home needs improvements, and where you live. Buy-before-you-sell services charge service fees and tend to have restrictions on eligibility.
How do you put an offer on a house before selling yours?
Using a buy before your sell or some cash offer services, you can make an offer on a new home before selling your current one. These companies use the value of your current home to lend you the money to make a strong offer on a new home, entirely in cash in some cases.